On the Dash:
- Cleveland-Cliffs signed rare two- to three-year fixed-price steel contracts with U.S. automakers to stabilize costs amid tariff pressures.
- Automakers face billions in added expenses from Trump’s steel and aluminum tariffs, with Ford projecting a $2 billion hit this year alone.
- The longer-term steel deals signal automakers’ efforts to hedge against rising material costs that could drive up vehicle prices and reshape competition.
Cleveland-Cliffs Inc. has signed rare multiyear fixed-price contracts with several U.S. automakers, including General Motors, as the industry braces for higher costs tied to President Donald Trump’s tariffs on imported steel.
The agreements, which run two to three years, cover industry-standard sheet steel and mark a sharp shift from Cliffs’ usual one-year contracts, according to people familiar with the matter. Terms of the deals, including pricing, were not disclosed.
Automakers, meanwhile, face billions in tariff-related costs on cars, parts, and raw materials. Ford has estimated a $2 billion hit from steel and aluminum tariffs this year alone. Companies are weighing whether to raise vehicle prices, but risk losing market share to rivals with larger U.S. production footprints and lower exposure to imported materials.
It remains unclear which automakers, beyond GM, signed the longer-term agreements.
Detroit automakers have expressed frustration with the administration’s trade negotiations, which have finalized deals with Japan, South Korea, and the European Union but left Canada and Mexico unresolved. Canada supplies nearly a quarter of U.S. steel imports, making it a critical source for American manufacturers.
The unprecedented steel contracts highlight how automakers and suppliers alike are hedging against prolonged tariff pressures that could reshape pricing and competition across the U.S. auto industry.
